One million sqm in Krakow thanks to Equal Business Park
Total office stock in Krakow has exceeded 1 million sqm. The record was broken thanks to Equal Business Park – building B of the complex was handed over for use lately. Cavatina is the property owner, while Knight Frank, sole agent, is responsible for commercializing the complex.
Monika Sułdecka-Karaś, Regional Director and Partner at Knight Frank, commented: “The historic moment has come – we have just passed the first million landmark. With such an impressive office space supply, Krakow remains the major regional market in the country. The rising supply of modern areas is the answer to the record-breaking office demand in the capital of Lesser Poland. Companies acknowledge Krakow’s potential and want to lead their businesses here. As a reminder, almost 100,000 sqm of office space was let in Krakow in the first half of the year, a large share of which we had the opportunity to broker. Krakow’s move onto 8th place in this year’s Tholons Top 100 Outsourcing Destinations ranking only confirms the city’s attractiveness as the list includes the best global locations for business.
It has to be said, that tenants have high expectations and will not be satisfied by standard solutions. They want the building to stand out and create a space well integrated with the city or, to put it short, which is a good working place. krakow’s Equal Business Park, of which Knight Frank is sole agent, offers that kind of space. The construction of the second phase with an area of ca. 19,000 sqm has just been completed. With its completion, the total office stock in Krakow exceeded 1 million sqm. We are pleased to have the occasion to introduce tenants to this unique property, but there is still more to come. June saw the start of the construction of the third stage of Equal Business Park with an office space of 23,000 sqm.”
The office market in Krakow is growing dynamically. According to Knight Frank’s estimates, the total office stock might exceed 1.1 million sqm by the end of the year. About 30 projects with a total space of more than 270,000 sqm remain under construction.
The record-breaking increase of supply in Krakow is the answer to high office space demand. In H1 2017, lease agreements for 98,000 sqm of office space were signed in the capital of Lesser Poland. The deals constituted over 70 percent of the average annual stock demand noted in the years 2011-2016. At the same time, the result was only 11 percent lower in comparison to the record-breaking result from the same period last year.
In comparison to other regional cities, asking rents in Krakow remain on a stable level. By the end of June 2017, asking rents in Class-A buildings amounted to EUR 13.5-14.5 sqm/month, while in Class-B buildings to EUR 10-12 sqm/month.